From author Bob Mayer:
Got this just now from Draft2Digital through which we have titles in Scribd:
As we all know, the concept of a subscription service for books is extremely new. There are several models on the market now for effectively monetizing subscriptions, and none of them exactly matches what we’re used to from traditional sales royalties. As the market experiments with different approaches, there are bound to be some missteps and false starts along the way. In fact, we should expect this business model to evolve even more in the near future.
Scribd took a significant risk putting in place a model that paid authors the same amount as a retail model for each book read by a subscriber. As we all know, romance readers tend to be incredibly avid readers. In trying to cater to this voracious readership while under this progressive payment model, Scribd has put itself in a difficult place. In a bid to better balance these operating expenses, Scribd is immediately slashing the volume of romance novels in its subscription service.
If you are receiving this email, then you are a Draft2Digital author who has published books in the romance genre to Scribd. This means that some or all of your romance novels are likely going to be delisted from their service today. (Books that are priced at free will not be removed.)
While a large number of romance novels will be removed from Scribd, it isn’t all of them. We aren’t privy to the exact guidelines Scribd is using to decide which romance novels will remain, and it’s our understanding that they remain in flux at Scribd. However, over the coming days, we will be working closely with Scribd to resolve the exact criteria and share them with you so that you’ll have the opportunity to restore all of your titles to the service.
Please Note: If you write in other genres, understand that those books will not be affected by this policy change.
We apologize for any inconvenience this may cause and assure you that we are working with Scribd to explore alternative solutions to this challenging problem, always searching for new terms that could restore our full catalog to their service.
Believe me, this situation is just as difficult for Draft2Digital as it is for you. We also stand to lose a significant portion of our revenue due to this change. More importantly, we regret that we couldn’t give our authors more notice, but unfortunately we were informed quite late in Scribd’s decision-making process. It has been our highest priority throughout these discussions to preserve as many of your books in the service as possible, and we will continue to pursue that goal going forward.
If you have any further questions or concerns, please don’t hesitate to contact us.
So. Make of it what you will. But to me it means a lot of steps in the wrong direction for subscription services. It means that if a certain genre gets too many borrows for the subscription price, yet the service has to pay authors, the system is breaking down. Something has to give. De-list titles. Already happening. Pay authors less? On the horizon.
Link to the rest at Write on the River and thanks to Jaye, Deren, Julia and several others for the tip.
Here’s a link to Bob Mayer’s books
PG says this is certainly upsetting, but it’s nothing compared to what happens to authors when their publisher goes bankrupt and both their royalties and their rights drop into a black hole.
Here are some thoughts from Mark Coker:
Scribd, the fast-growing ebook subscription service, today announced dramatic cuts to their catalog of romance and erotica titles.
Effective immediately, I estimate 80-90 percent of Smashwords romance and erotica titles will be dropped by Scribd, including nearly all of our most popular romance titles. Books priced at free are safe and will remain in their catalog.
Based on what I’ve been able to glean, the lower the price and the higher the word count, the better the odds the book will remain. Few books priced $3.99 and above will remain. Scribd is not publicly revealing the formulas for what stays and what goes, probably because much of this is still in flux. They’re cutting all publishers and distributors with the same blunt knife.
It’s ugly. The problem for Scribd is that romance readers are heavy readers, and Scribd pays publishers retailer-level margins for the books.
. . . .
Bottom line, romance readers – readers we love dearly at Smashwords – are reading Scribd out of house and home. Scribd’s business model, as it’s set up now, simply can’t sustain the high readership of romance readers. They’re not facing the same problem with readers of other genres.
. . . .
While I understand Scribd’s need to stem the bloodletting, and I support their decision for this reason, I don’t think they found the right solution yet. I think a better solution – one which would strike the right balance between the needs of readers, authors, publishers and Scribd – is to introduce tiered subscription options that would allow moderate readers to enjoy the Scribd service at the $8.99 level, but then offer heavier readers another subscription tier – possibly priced at $14.99 or $19.99 or whatever – that wouldn’t break the bank to the detriment of all authors.
Link to the rest at Smashwords